I am unable to understand the concept that why it is important to use dp in trees.
In the video only application is given via question.
Unable to understand the concept behind DP tree
DP involves solving a problem using solutions to subproblems, and proceeding from the bottom up. When you do “DP over trees”, the original problem involves the whole tree, and the subproblems are subtrees; when you know the answer for the subtrees, you can compute the answer for the whole tree. So this is just like basic dp.
I would recommend you to read this blog https://codeforces.com/blog/entry/20935
and this link for video explanation https://www.youtube.com/playlist?list=PLfBJlB6T2eOsET4tlfcLs7oXR7kCyt1xc